Karooooo has reported a substantial increase in subscriber growth across its platforms and is now actively exploring emerging technologies to sustain and accelerate its expansion trajectory. Founded by Zak Calisto, who continues to serve as Chief Executive Officer, Karooooo is best known for its flagship brand Cartrack. Calisto retains ownership of more than half of the company’s shares, positioning him as a major shareholder in a business now valued at over R24 billion.
In its most recent trading update, the group announced a strong surge in Cartrack’s subscriber numbers. For the three months ending 30 November 2025 (Q3 2026), Cartrack’s total subscribers rose by 16%, reaching 2,568,467, up from 2,223,227 recorded in Q3 2025. This performance was underpinned by a record 111,478 net subscriber additions during the quarter—substantially higher than the 86,617 net additions reported in the same period the previous year.
Subscription revenue—the backbone of Karooooo’s operating model—grew by 20%, increasing to R1,239 million compared to R1,032 million in Q3 2025. The group’s operating profit rose 14% to R369 million (Q3 2025: R325 million), while earnings per share increased 11%, reaching R8.55 from R7.68 in the prior year. Breaking down the performance by segment, Cartrack delivered an operating profit of R359 million, up 14%, while Karooooo Logistics posted an operating profit of R10 million, an increase of 7%.
CEO Zak Calisto noted that the latest quarterly performance reflects the company’s “consistent and disciplined track record of growing our business at scale.” He added that accelerating subscription revenue alongside record subscriber additions demonstrates continued operational strength. The robust subscriber expansion was largely driven by increasing customer uptake of Cartrack’s Video and Cartrack Tag products.
Calisto acknowledged that certain timing differences exist between growth-related investment expenses and the full realisation of the associated future revenue. However, he emphasized that, given the company’s strong unit economics and healthy balance sheet, investing for accelerated growth remains the most effective strategy for enhancing long-term shareholder value.
He added that ongoing investments in distribution capacity will yield durable competitive advantages “that extend beyond the current financial year,” reaffirming the company’s commitment to disciplined capital allocation, strong unit economics, and its vertically integrated, open operating culture.
Looking ahead, Karooooo maintains a positive outlook, asserting that it is strategically positioned to benefit from a growing and largely underpenetrated market. Customer demand remains robust, supported by rapid digitalisation, the need to improve operational efficiency and reduce operating costs, and heightened requirements for safety in physical operations.
The company believes its proven, profitable business model—supported by a strong balance sheet and healthy cash reserves—provides multiple levers for continued expansion. It highlighted ongoing investments in AI innovation, enhanced platform capabilities, and improved customer experience as key drivers of sustainable long-term growth.
Karooooo reiterated confidence in its ability to generate strong and sustainable cash flows. Strategic priorities for the coming periods include expanding sales capacity to drive new subscriber growth while increasing the adoption of Video and Cartrack Tag solutions among the existing customer base.
However, the group acknowledged that it remains partly constrained by staffing capacity. Karooooo has recently faced media scrutiny over alleged harsh working conditions—claims the company denies. Despite this, the group emphasized its intention to continue scaling its sales operations to support further subscriber expansion and product penetration.
Given the positive momentum across the first three quarters of the 2026 financial year, Karooooo issued updated guidance:
- Cartrack subscription revenue is forecast between R4,785 million and R4,900 million, representing growth of 18% to 21%—an upward revision from the previous guidance range of R4,700 million to R4,900 million.
- Cartrack operating profit margin is estimated between 27% and 30%, compared to the prior outlook of 26% to 31%.
- Karooooo adjusted earnings per share (non-IFRS) are projected between R32.50 and R35.50.
The group concluded that, based on current market conditions and operational momentum, the most appropriate long-term strategy is to intensify the sale of Video and Cartrack Tag solutions to existing customers. This approach reinforces Karooooo’s leadership position in South Africa while driving incremental revenue and deeper customer integration.
